SQL Sever 2008 R2 has an unsupported version error in SharePoint product configuration wizard

I was trying to create a SharePoint 2013 development VM and came across this nasty error,

SQL server at "SQLSERVERNAME" has an unsupported version at "xxx.xxx.x.x" (IP address). Please refer to http://technet.microsoft.com/library/cc262485(office.15)?ocid=fwlink#section5 for more information on the minimum required SQL Server Versions and how to download them.

I also tried PowerShell to create a configuration database but got same error,

PS C:\Users\Administrator> New-SpConfigurationDatabase
cmdlet New-SPConfigurationDatabase at command pipeline position 1
Supply values for the following parameters:
DatabaseName: SharePoint_Config
DatabaseServer: MSSQLSERVER
FarmCredentials
Passphrase: myPass

I fixed the error by installing update for SQL Server by Microsoft to make it work with SharePoint 2013. I downloaded Microsoft® SQL Server® 2008 R2 Service Pack 1 from http://www.microsoft.com/en-us/download/details.aspx?id=26727. 

Running this setup will update your SQL Server R2 to SP1 which is requirement for SharePoint 2013.